Oracle misses – Oracle posted fourth-quarter results that beat expectations on earnings and overall revenue, but its cloud sales came in below Wall Street targets. The company also said it will raise about $40 billion to fund a data center buildout, while reaffirming its 2027
By the time Wall Street settled in after the bell on Wednesday, Oracle had already delivered a familiar kind of win—strong profit and total revenue—paired with an uncomfortable miss in the one area investors have been watching most closely.
Oracle reported fourth-quarter earnings per share of $2.11 on revenue of $19.18 billion, topping analysts’ expectations of $1.97 for EPS and $19.09 billion for revenue. A year earlier, the company posted EPS of $1.70 and revenue of $15.9 billion.
But when the focus narrowed to cloud performance, the numbers didn’t land where the market wanted them. Oracle’s Cloud business revenue—covering Cloud Applications and Cloud Infrastructure—came in at $9.91 billion. while Wall Street was looking for $9.99 billion. Cloud Applications revenue reached $4.13 billion, below expectations of $4.17 billion. Cloud Infrastructure landed at $5.79 billion, with analysts projecting $5.72 billion.
That mixed picture didn’t prevent Oracle from standing firm on where it wants to be. The company reaffirmed its 2027 revenue guidance of $90 billion.
Behind the quarterly report, the company also set out how it plans to fuel the next phase of growth. Oracle said it will raise roughly $40 billion to pay for its data center buildout through a mixture of debut and equity sales.
Investors received another demand signal with remaining performance obligations. Oracle reported RPOs—contracts signed but not yet delivered—topped out at $638 billion, ahead of expectations of $589.5 billion. Oracle’s RPOs are designed to give investors a view of broader demand for the company’s cloud services. a factor that has taken on extra weight as the world’s AI build-out accelerates.
Oracle’s earnings came days after OpenAI revealed it filed confidential paperwork for its initial public offering. The cloud services and infrastructure provider counts OpenAI among its most important customers. In 2025, OpenAI signed a $300 billion, five-year deal with Oracle, described as a linchpin of its AI efforts.
The market context around Oracle has been sharp. Oracle stock took a stinging hit after announcing its second quarter earnings in December on a weak outlook and concerns related to its spending plans. Since then. the stock had been on an upswing after beating Q3 expectations in March and raising 2027 revenue guidance to $90 billion.
As of Tuesday’s close, Oracle was up 5.6% year to date. Over the last 12 months, the stock has climbed more than 16%.
Oracle’s relative performance has been a point of comparison for investors trying to judge which big tech names are gaining momentum. Amazon is up roughly 13% over the last 12 months. Microsoft is down more than 14% in the last year. Google. however. has outperformed its peers. rising nearly 104% over the past year. backed by improvements to its Gemini models and Google Cloud Platform growth.
Oracle Q4 earnings cloud revenue Cloud Applications Cloud Infrastructure remaining performance obligations RPOs data center buildout 2027 revenue guidance OpenAI deal AI spending